Here we are 25 years after Gatto gave this speech, our society has not "disintegrated" yet, Well-schooled people are far from irrelevant, in fact they have given us nearly every single modern comfort and technological breakthrough in modern history and they have continued to do so over the last 25 years.
What Gatto is proposing would just create even more inequality and social injustice, where only parents with the means to see their children get a good education can do so, either by having the background and time to homeschool or the money to provide private schooling or tutors for their own children.